XOM - Oil Majors To Consolidate: Watch For Further M&A Activity Across Sector In 2024 | Benzinga
The oil and gas production sector has already seen some mega deals in 2023 and merger and acquisition (M&A) activity is expected to continue into 2024 as the oil majors seek new growth opportunities.
Exxon Mobil (NYSE:XOM) announced in October an agreement to acquire Pioneer Natural Resources (NYSE:PXD) in an all-stock transaction worth nearly $60 billion. Later in the same month Chevron (NYSE:CVX) announced a similar stock deal to buy Hess (NYSE:HES) for $53 billion.
Market analysts see the two similar-sized deals as a doubling down on bets that fossil fuels — particularly oil and gas — will remain the predominant sources of energy for decades to come, despite the global push towards renewable energy sources.
There will be a slow and steady realization that the energy transition will be “a messy, non-linear one,” Biraj Borkhataria, analyst at RBC Capital Markets predicts. Oil and gas demand ...